Atlanta’s Midtown submarket driving up total office vacancy rates

– Office vacancy rates continue to climb in Atlanta and much of the vacancy is within the urban submarkets, with Midtown exhibiting the highest total rate at 32.6% at the end of 2024.

– New product delivering is the main force driving up vacancy in this submarket. When looking back a few years ago, Midtown had crucial demand for more office product and was seen as the most desirable in-town hub with endless development potential for both commercial and residential real estate. Now that over 7 msf of office product has delivered since 2018, supply has officially caught up with the demand causing the construction pipeline to finally cool.

– With less than 300k sf currently under construction in Midtown as well as the positive absorption recorded during Q4 2024 for the first time since the beginning of 2023, vacancy should begin to level out in 2025 as leasing activity continues to gain momentum and tenants searching for space remain active within the submarket.